The European Commission is said to have sent an email to EU governments, saying it does not see any immediate impact on the security of the bloc’s oil supplies from the situation in the Middle East. According to Reuters, which reviewed the email details, it said:
“At this stage, we do not expect any immediate oil SOS (security of supply) impact.”
That being said, the EU is considering calling an ad-hoc meeting of its oil coordination group later this week. It said it has requested member countries to share their oil security of supply assessments by the end of today.
Well, I would say the situation is quite fluid at the moment. All eyes are still on how long the conflict in the Middle East can last and its long-term impact on the Strait of Hormuz, so it will not be easy to predict or forecast anything.
So far, oil prices have still not recaptured early gains, with WTI crude up 7% on the day to currently trade at $72.05. It rose more than 13% in early trade to above $75 before retreating sharply in Asia trading, hitting a low of $69.43.
